Bitcoin ended the first quarter of the year on a bearish note, and this red quarter carries some implications for the cryptocurrency. Despite the calls for a bottom, it seems that the digital asset might be far from actually reaching a bottom. As the new quarter unfolds, there is also the possibility that the Bitcoin price will end up forming a bearish pattern, and this could mean that the crypto winter could continue for much longer than expected.
Bitcoin’s Bearish Close And Its Implications
Pseudonymous crypto analyst Ming outlined what the bearish close actually means for the Bitcoin price. According to the post, this move shows that the bears are actually in charge and that the possibility of a lower decline is still very much in play.
Instead, the crypto analyst is looking at the Bitcoin price from the Higher Time Frame (HTF), putting the focus on the structure of the digital asset, as well as key levels that investors need to watch. Taking these in tandem, it could point to where the price is headed next.
The main level, the crypto analyst says, actually lies at around $58,900. This is interesting because the Bitcoin price has yet to hit this low since the decline began, making it an untapped monthly low. Therefore, whether or not the price ends up touching this level would be a great determinant of where Bitcoin is headed next.
What To Expect If Bears Break The Line
As already mentioned above, $58,900 is the next important level for Bitcoin, so it is imperative for bulls to hold above this level while the bears try to pull it down. In the case that the price breaks blow $58,900, then the analyst predicts that further decline are in view.
This is because a break of this level would lead to the formation of the Three Black Crows candlestick pattern. This is historically bearish and would lead to a bearish candle. Following previous performances, it could result in an over 30% decline.
However, in the event that the Bitcoin price does maintain above this level after sweeping it, then it would be bullish for the price. The analyst predicts that the cryptocurrency could end up moving back into the $71,300-$74,400 level as a result. But Minga explains that “There’s liquidity resting there on the LTF so another bearish retest of that area is still very much in play before continuation back to the downside.”
Featured image from Dall.E, chart from TradingView.com
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